Mux Secures $105 Million in Series D Funding

Just over eight months following a $37 million funding announcement, Mux has successfully raised an additional $105 million in capital.

This Series D funding round was spearheaded by Coatue, resulting in a company valuation exceeding $1 billion. While the precise valuation remains undisclosed, existing investors including Accel, Andreessen Horowitz, and Cobalt participated, alongside new investor Dragoneer.

Strategic Decision to Fuel Growth

According to co-founder and CEO Jon Dahl, raising further funding wasn’t initially a necessity for Mux. However, ongoing discussions with Coatue and other interested investors after the Series C round led to the conclusion that increased capital could significantly accelerate growth during what he termed “this inflection moment in video.”

Dahl referenced a concept popularized by Marc Andreessen of a16z, stating, “I think video’s eating software, mirroring how software consumed the world a decade ago.” This signifies a shift where video, once confined to traditional viewing settings, is now pervasive across platforms like social media and fitness equipment.

The Expanding Role of Video in Software

“We are in the nascent stages of a substantial five- to ten-year transition, with video becoming an integral component of every software project,” Dahl explained.

He emphasized Mux’s suitability for this evolution, describing it as “a video platform for developers.” Its API-centric design facilitates rapid publishing and dependable streaming experiences for end-users. The company’s initial offering, Mux Data, a monitoring and analytics tool, was followed by its core streaming video product, Mux Video.

Data-Driven Approach to Video Streaming

“A data-first approach to building a video platform necessitates robust data collection, monitoring, and analytics,” Dahl clarified. “We prioritized the data layer before developing the streaming platform itself.”

Mux’s clientele includes prominent names like Robinhood, PBS, ViacomCBS, Equinox Media, and VSCO. While serving digital media companies, Dahl highlighted that “our core market is software.” He noted that video was previously perceived as a specialized feature, relevant primarily to companies like ESPN or Netflix.

Pandemic-Driven Demand and Future Plans

However, recent years have demonstrated that “video is a fundamental aspect of communication” and that “every software company should integrate video into its product offerings.”

Demand for Mux’s services surged during the pandemic. On-demand streaming through the platform increased by 300% over the past year, while live video streaming experienced a remarkable 3,700% growth, and overall revenue quadrupled.

“This growth required significant effort,” Dahl acknowledged. “We dedicated much of the last year to scaling the platform and investing in its capabilities.”

The new funding will enable Mux, having now raised a total of $175 million, to continue these investments. Dahl intends to expand the team from 80 to 200 employees and explore potential acquisitions.

Investor Confidence in Mux’s Vision

Coatue General Partner David Schneider stated, “We were impressed by Mux’s laser focus on the developer community, and saw impressive customer retention and expansion indicative of the strong value their solutions provide.” He added, “This funding will enable Mux to continue to build on their customer-centric platform and we are proud to partner with Mux as it leads the way to this hybrid future.”